Economic optimism and stable market conditions will “have
a positive influence on the supply of foreign exchange and
consequently have a moderating effect on inflation,” the
Lusaka-based Bank of Zambia said in an e-mailed statement today.

Zambia’s inflation accelerated to 6.5 percent in April,
from 6.4 percent in March, below the government’s target of 7
percent by year-end. Expectations that supplies of domestically
produced corn, fish and vegetables will increase, and that
domestic credit will grow at a “minimal” pace, will help
contain inflation, according to the statement. Exports,
especially merchandise shipments, may rise next month, boosting
revenue, it said.

It was the first review of the policy rate since its
introduction last month. The central bank will next meet to
review the benchmark interest rate at the end of May, it said.

Zambia’s kwacha currency declined for the first time in
five days, depreciating 0.1 percent to 5,210 per dollar by 4:21
p.m. in Lusaka, according to data compiled by Bloomberg.